![]() Cartoon by Chris Britt Canadian consumer debt load becoming unsustainable: A recent survey of Canadians suggests:
Debilitating drought grips US South-East and parts of US West: The NYT reports that several regions of the US, notably the South-East, are facing their worst drought in a century. Listen to the interviewees’ comments in the report and you’ll see why water shortages are so insidious — they creep up on you and cause unimaginable chaos. The Right to Security — but not to insurance: Many of us in affluent nations take security for granted, and view it as our right. 9/11 has changed that, but nevertheless our approach to coping with risks to our security that are low-probability but high-consequence (like hurricanes and earthquakes) is to buy insurance. But what happens when (private profit-oriented) insurance companies just stop selling insurance to those who need it?
Achieving Zero Waste: Dale Asberry’s new blog points us to this exhaustive global survey of attempts to achieve zero waste in human activities, by Michael Jessen. Zero waste is an absolute precondition to sustainability. Great short video on the Information R/evolution: Just go watch it. Fascinating. Send to me by three readers, which is exactly the video’s point. Watch more of cultural anthropologist Michael Wesch’s brilliant stuff. Like this one on education. And this one on how the point of Web 2.0 is that we are teaching the machine what’s important and why, and that we are the machine. The end-state of Reality TV?: For voyeurs and exhibitionists everywhere, you can now anonymously broadcast your life 24 hours per day, or watch any of a hundred other people’s, thanks to justin.tv. Thought for the Week: Via Johnnie Moore, from Gabriele Lakomski’s book Managing Without Leadership: Our everyday experience tells us that organisational life is messy and complex and that those in positions of leadership are neither omniscient nor infallible. Why, then, do we quite readily believe that there is a causal link between organisational functioning and leadership? Why do we not believe our own experience that how things work in organisations is much more complicated?
…In a naturalistic redescription of the [leadership] phenomenon, we might view it as an emergent, self-organising property of complex systems. There would then be no need for engaging in more leadership studies: instead, we could redirect our attention to the study of the fine-grained properties of contextualised organisational practice. Posted from Vancouver. |
October 20, 2007
Saturday Links for the Week — October 20, 2007
October 18, 2007
The Two Biggest Political Issues of the 2010s
![]() Pew Research Poll, US, 2005 (I’m waiting for Jon Husband to OK my publishing of the podcast conversation and transcript I recorded with him last week. It should be up Monday. In the meantime, I’ve been meaning to get the following off my chest:) What will the two biggest political issues of the 2010s be, worldwide? You might guess global warming (maybe in the 2020s), or oil price spikes or the collapse of the US dollar (they’ll be old news by the 2010s), or even, as I posted yesterday, outrage over wealth and income disparity. But you’d be wrong. My prediction? It all comes down to what touches people personally, and there are two issues that will touch us all personally in the 2010s:
What makes me believe this? It’s the undercurrents in the news even now. Like the story of the pro-immigration marches in the US last year, theresult of which was a strong increase in across-the-board support for tightening immigration laws, enforcement, amnesty programs and refugee admissions. Like the thinly-veiled xenophobic rhetoric in government pronouncements. Like the recurring stories of domestic murder-suicides that are not crimes of passion, but crimes of compassion. Like the stories of nursing homes becoming increasingly desperate and violent places, even before their coming population explosion. Weak signals, growing stronger, and poised to overwhelm us, at least politically, in the decade to come. Category: Our Culture
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October 17, 2007
Will Increased Income and Wealth Disparity Lead to Generational Class War?
![]() Practitioners of a new statistical discipline called Econophysics have produced the curve above, showing US wealth data plotted logarithmically. They claim the richest 0.1% of the population’s income is described by Pareto’s Law — meaning that if you’re born into that kind of money, you’ll only get richer, no matter what you do. And they claim the poorest 99.9% of the population’s income is explained by Boltzman’s Law — describing random movement of gases in an enclosed area, and meaning that even if you’ve struggled up to the left end of the green curve, you’re far more likely to then get poorer than to make it to the 0.1% elite. A recent survey in the UK shows that, between 1995 and 2005, the average net wealth of 18-to-24 year-olds remained at zero, that of 25-to-34 year-olds fell from $3000 to $995, and that of 55-to-64 year-olds tripled from $50,000 to $150,000, although their total debts actually rose during that period. In the US, reports USA Today, all of the increased wealth since 1989 has accrued to those 55 years of age or older. Like in the UK, the big losers have been those who are now 35 to 50. This generation doesn’t look poor — they have as much stuff or more than previous generations at the same age, but their debts are astronomical. They are horrifically vulnerable to an interest rate spike (even a small one like the one that has, along with the US housing crash, created the current credit crisis). The disparity is expected to increase, and accelerate. At a recent financial executives conference in Toronto, Peter Bernstein, one of the world’s most distinguished economists told the (mostly older) crowd that income and wealth disparity posed the largest single threat to economic security and political stability in affluent nations. The people I spoke to afterwards said they didn’t believe him. I wonder why. I watched a program a couple of years ago that showed an astonishing correlation — community-to-community, region-to-region, country-to-country — between wealth disparity and violent crime. This is nothing new, as anyone in a country with a high Gini index like Brasil (or, now, the US) can tell you. I’ve also reported on this blog that the belief that hard work or education is the road to upward economic mobility is a myth. The chart above demonstrates that if you’re born rich, you’re destined to get richer, and if you’re not, well, you’re in for a lifelong struggle with at least a 50% chance of actually ending up poorer for all your efforts. Put these all together and you have a tinder keg. There are only three things keeping it from blowing:
So when the economy unwinds, will the poor overcome their ignorance and shame and rise up in mutiny against the old rich elite that has hoarded 100% of the benefits of economic development for a half-century? Especially since for the most part this elite is also disproportionately responsible for the activities that has created global warming? It seems unimaginable, doesn’t it? It just isn’t in the psyche of Americans, Canadians, Europeans to rise up in civil war, is it? Your answer to these questions will depend on how well you have studied, and learned, the lessons of history. I suspect Peter Bernstein’s answers and mine are the same. He stole the show, andall he got was polite applause. What will it take for us to learn? Category: Understanding Economics
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October 16, 2007
Can the Corporation Survive?
My book on Natural Enterprises proposes a partnership model for new enterprise formation and sustainability. Joel Bakan’s book The Corporation argues that, in their single-minded pursuit of short-term profit at any cost, corporations now behave pathologically (see graphic above), and against the public interest. Is the corporation, as a model, a hopeless case, or can it be reformed or reinvented?
There are many who believe corporate charters can and should be rewritten to require the pursuit and balancing of a so-called “triple bottom line” — social and environmental as well as financial performance. Many others think this is naive (there are no established or easy measures or benchmarks of social or environmental performance) and unreasonable when the three bottom lines are in irreconcilable conflict — the company that chooses to emphasize profit over the other two will, in our ‘free’ market, outgrow and hence dominate and even eliminate its more balanced competitors. Even those who argue that the three bottom lines should, in the long run, coincide, have to concede that in the short term — the horizon of most corporate shareholders and managers — profits always trump social and environmental responsibility. Corporations were originally invented to allow people to raise money for large ventures. Without the opportunity for substantial return, and limited liability, investors would not advance funds where there was considerable risk. But soon, ownership of ‘shares’ was confused with ownership of the business. Then, thanks to an incompetent legal error, corporations were granted the rights of ‘persons’ — the right to sue, to lobby, and to otherwise use the collective wealth of the company to influence legal, political, economic and social affairs far beyond protecting the security of the original investment. At this point, the sole objective of the corporation became to satisfy the shareholders insatiable demand for higher returns and lower risk on their investment, at any cost to the real ‘owners’ of the enterprise — the employees and the community who granted the corporation the privilege of existence. The end result — pathological behaviour, a Frankenstein monster out of control of its master. So what can be done? Is the corporation salvageable? If not, how can we revoke corporate charters without precipitating economic chaos? Bakan proposes stronger regulation and enforcement, greater legal liability for officer and directors, public education, and regulated use of the precautionary principle to govern corporate behaviour. Other corporate reform advocates have proposed, in addition to the above, the elimination of ‘personhood’ rights, moving public well-being activities back from the private to the public sphere, standard global corporate codes of conduct (with severe penalties for breaching them), putting “triple bottom line” objectives into corporate charters, prohibiting dishonest corporate advertising, ending subsidies for large corporations, scrapping or redrafting ‘free’ trade and other corporatist and anti-democratic regulations, and taxing pollution, speculation and other ‘bads’. I’ve personally advocated not allowing corporations to own other corporations, restricting the number of corporations any one person can beneficially control to one, and putting a size cap on corporations. David Korten, author of When Corporations Rule the World, is one of the speakers at next month’s Future of the Corporation conference in Boston. The conference is proposing the redesign of corporations according to six principles:
Korten has advocated many of the proposals for corporate reform listed above, and has also stressed the importance of ‘relocalizing’ corporations to focus on the needs of the communities in which they are located. I’d like to believe this can work, and I’m prepared to listen to him with an open mind. But as I’ve explained before I think the evolution of dysfunctional and psychopathic corporations is a complex phenomenon that arose with the full complicity of the public — it suited our collective purpose to let this happen. I’ve become a skeptic about the possibility of bringing about change by political, legal, educational or economic means or any other ‘imposed’ method. Such impositions and movements have (almost) never brought about significant change. All we can do is adapt to the current state, and work around what doesn’t work (and perhaps never really did). The dysfunctional model of the corporation will suffer the same fate as every other institution and entity that has ceased to evolve, innovate and serve our collective interests. It will collapse. We just have to wait it out. And in the meantime, we need to design something new to take its place, something far different from the ‘redesigned’ corporation proposed using the six principles above. I think that model is Natural Enterprise, which achieves the end results of these six principles, and much more, but not because it is told or regulated to do so, but simply because it is, and always has been, the way we weremeant to make a living. Category: Creating Natural Enterprises
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October 15, 2007
What Makes Us Care About Nature?
![]() I‘ve written before about how we can’t expect people to care about nature and wilderness, or anything else, unless they’ve experienced it first-hand. We may appreciate things intellectually (global warming, the war in Darfur, poverty, the need for security against violence) but we will not generally fight for them unless we relate to them emotionally, viscerally. We have to experience them. Or do we? I’ve just been reading a fifteen-page list of environmental education activities taking place in schools across Canada. The objective is to get kids to care about nature, and about global warming, and about ‘the environment’ (as if that were somehow something apart from us) by getting them to experience it first-hand. It’s a long list. Yet while the kids talk a good story (the young are suckers for good propaganda, and the education system is expert at it), and say they would vote Green in an election, as soon as they reach voting age they tend to vote very much like everyone else. The field trips are fun, but the level of awareness of environmental facts and realities is as abysmal among this age group (per my own experience and some recent polls) as any other. I’ve also been talking a lot with business executives, and come to a remarkable discovery — they care about the environment, and about global warming, but not because they think it has anything to do with the bottom line of the business (and, sorry, they don’t care about the ‘triple bottom line’ — financial + social + environmental performance), but rather because they feel responsible to their children and grandchildren. This seems to be true whether these children or grandchildren are yet of the age when they can chastise their elders for social and environmental irresponsibility, or whether they have if they are old enough to do so. It is instinctive, emotional, visceral. It seems to be true even for those who do not, or not yet, have children. They will acknowledge it is an issue that keeps them awake at night, but also acknowledge they are not (and may never) be prepared to compromise their companies’ profitability to institute socially and environmentally responsible programs. Though they wouldn’t vote against them if they had company. Canadians, when asked, say that the environment is the most important issue facing the country today. Yet their votes (40%, a record high, for the Kyoto-abrogating Conservative government; recent provincial elections where the Greens ran in every constituency but could muster only as much as 8% of the vote) suggest they consider this a low-priority issue. A few years ago I was at a weekend retreat with some of the brightest and most creative people in the US. They were almost all very progressive in their thinking (and universally loathed George Bush) but they clearly cared more about immediate personal political and social issues (the Iraq War and its threat to the US economy and security; the large-scale erosion of civil liberties; domestic poverty, the abysmal state of the education and healthcare systems) than about ‘the environment’. They claimed to care about global warming and urban sprawl and pollution and garbage and the destruction of old growth forests, but these were largely intellectual concerns. I got the strong sense that they saw them as failures of technological imagination, innovation, and creeping corporatism, that could be ‘fixed’ through a combination of technology and having a political progressive in the White House. Even An Inconvenient Truth was appreciated as an act of political rectitude and outrage against conservatism more than anything else, and the fact that that show was virtually devoid of any solutions to the problems it pointed out was not considered a serious matter. So what’s going on here? Most North Americans live in cities, and their idea of nature is a park or a summer cottage on the lake or a camping trip. So nature to them is a tourist destination, like an overgrown theme park, a recreation, or an abstraction. They know about global warming but their spending and voting shows they don’t think it is a priority, or even something they are responsible or empowered to do anything about. They think government and/or technology can fix it, if they are inclined or pressed to do so. Even though everything they are taught shows that this is untrue. What’s more, most North Americans don’t really want to hear about environmental or social issues or problems. At the end of the day they want to relax, or to escape, and they don’t want to feel guilty about it. So environmental magazines and websites and blogs can’t compete with the political and technological and entertainment ones (and the most popular environmental blogs are of the feel-good ‘new technology will save us’ variety). When it comes to the environment, we mostly want to be reassured that someone else can and will look after the ‘problem’. All this started me thinking about why I care so much, at such a ‘deeper green’, emotional level, than most people. I grew up in a small city, on a small lot. I went to the nearby park sometimes, but the park was small and had few trees. In my childhood I didn’t really care about zoos. We had a cat, who I loved, and cried when one day (I was around twelve) he never returned home. I was deathly afraid of large dogs and (for some reason) beetles. We sometimes rented a cottage for two weeks in the summer, but I was more interested in baseball cards and comic books than the beauty of nature. Yet even at this young age there was something inside me that, I suppose, destined me to care about the natural world. I remember being upset about finding dead birds, and about the devastation that army tent caterpillars did to the neighbourhood trees. I was then (and still am) irrational about cruelty to animals — one of the two fights in my life was with a kid I caught trying to hurt birds with a slingshot, and when adults would make jokes about ‘kicking the dog’ I would walk out, furious. Still, although I started to accompany my father on fishing trips when the locations were remote and gave me the chance to go for walks in the woods (while he fished), it didn’t seem to occur to me that my father’s catch-and-release was cruel recreation. By the time I was in my late teens I had become a largely uninformed but ardent environmentalist. I fought against boreal forest hydro developments and arctic pipelines, and worked for environmentalist parties and candidates. I recall speaking to a senior minister in the Trudeau cabinet about the damage to caribou migration and the danger of permafrost melt posed by the Mackenzie Valley Pipeline and was told ‘Who cares about the permafrost?’ When I replied that I did, and I didn’t understand why he didn’t, he was hustled away by an aide before he could engage in a fruitless debate. I protested against environmentally destructive development on-campus in university. I wrote to Paul Ehrlich about The Population Bomb asking (already) What can we do? Then, in the mid-seventies (and my mid-twenties) my environmentalism went into a twenty-year period of dormancy. I have no idea why, except perhaps that it didn’t seem as if my angst was getting me anywhere, and I was tired of being hurt by every new atrocity, local and global, being reported. My membership in Greenpeace and Ontario Nature lapsed. And then in my mid-forties, in the mid-nineties, I rejoined the movement. No idea what precipitated this, except perhaps more time to think, revulsion and rage over the explosion of factory farms, and the fact that I moved to a house in a wetland area. All of a sudden I just had to walk outside the door to be in another, uncivilized world. In my back yard and the 1200-acre conservation area behind it there was virtually no evidence of other human life. I could watch deer, wolves, foxes, beavers, muskrat, and a plethora of birds sitting in the middle of my yard. Yet I suspect it was my reinvigorated passion for wild places that led me to move here, rather than the other way around. I just discovered my place, my home, the place I was meant to live. And since then I have read some three hundred books and articles on natural philosophy and human culture, so now my beliefs are informed and modestly better articulated. But I haven’t really changed. I’m still the guy who grew up in the city. What made me care about nature? What makes us (some of us anyway) really care about nature, wilderness, the welfare of wild creatures and wild places, places that, for the most part, we have never been and never seen? Derrick Jensen, in A Language Older Than Words says: If someone were to ask me what to do about the problems facing the world today I would say: Listen. If you listen carefully enough you will in time know exactly what to do.
Perhaps that, more than instinct or study or experience, is what makes us love nature. When I was very young I was carefree, a dreamer, and because I didn’t have any interest in the world of adults, perhaps I listened instead to the voices inside and outside me. And then after two decades of deafness, I started to pay attention and listen again, and reconnect in some profoundly emotional and physical and sensual way with all-life-on-Earth. I don’t think it’s emotional sensitivity. I don’t think it’s knowing (what’s happening or what’s right or what’s possible). My good friends who are preoccupied with political matters and think a Democratic president will make a difference, or who are enamoured of technological solutions to all things, are not stupid or ignorant or insensitive. I find their optimism inspiring. But I sense that, in a very real sense, they live in a different world from me. They can’t hear, feel, sense, instinctively know what I know. And likewise I don’t understand their world, I don’t feel it. I don’t think this is something that can be taught, to children or anyone else. Probably doesn’t do any harm to try though, I guess. And while the books and articles in my reading list helped me understand what I was listening to, make sense of it, there was a time when I could have read any of these and they wouldn’t have meant a thing to me. As Daniel Quinn says (also talking about the importance of listening) in Beyond Civilization: People will listen when they’re ready to listen and not before. Probably, once upon a time, you weren’t ready to listen to an idea than now seems to you obvious, even urgent. Let people come to it in their own time.
Yet I think it is in all of us to listen, to hear the voice of all-life-on-Earth, to become a part, to reconnect, to fall under the spell of the sensuous. For twenty years I became deaf to it, it stayed inside me, waiting to re-emerge. It is in our bones, our DNA. No experience required. We are who we are, and at heart we are all wild creatures, in love with this wild planet and every living thing within it. It is just a matter of time before each of us is ready to listen.Ready to come home. Category: Let-Self-Change
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October 14, 2007
Sunday Open Thread – October 14, 2007
![]() Survey of frequency of mention of IT-related terms in the literature per study by Ping Wang.It would appear that the decline of KM since this paper was written has followed that of the other terms. What I’m Thinking of Writing (and Podcasting) About Soon: Coping With the Strategy Paradox: I met recently with Michael Raynor, who wrote The Strategy Paradox. He’s now looking at what else we can do to deal with this paradox, and he poked some holes in my argument that what we need is resilience, not planning. The Evolving Role of the Information Professional: Since I listed the five major ‘products’ of my new employer, some people have suggested that this list might define the new role of the information professional in all sorts of organizations. A Coming Class/Generational War?: Exploding economic disparity, and the widening wealth and opportunity gap between the old and the young, may be sowing the seeds for a class war between the old & wealthy, and the young & poor, that could transcend geographic borders. Why We Need a Public Persona: The journey to know yourself is the first step towards understanding how the world works and becoming truly yourself, which is necessary before you can make the world a little better. As de Mello said, this journey is mostly about getting rid of the everybody-else stuff that has become attached to us as part of our social conditioning, and getting rid of this stuff is perhaps what ee cummings meant when he said the hardest thing is to be nobody-but-yourself when the world is relentlessly trying to make you everybody-else. From birth, we pick up all this everybody-else stuff that clings to us and changes us, muddies us. We are rewarded by society for doing so. I find the ‘figments of reality’ thesis helpful in this hard work — realizing that our minds are nothing more than problem-detection systems evolved by the organs of our bodies for their purposes, not ‘ours’. That ‘we’ are, each ‘one’ of us, a collective, a complicity. What makes it so hard is that becoming nobody-but-yourself opens you up to accusations of being anti-social, weird, self-preoccupied, arrogant etc. So we end up, I think, having to adopt a public persona that is, to some extent, not genuine, not ‘us’ at all. That’s hard. How can we make this public persona as thin and transparent as possible? The Water Crisis: The disappearance of fresh water is likely to be the first wave of the future cascading crises of global warming. Ironically, the second wave is likely to be floods. Vignette #6 Blog-Hosted Conversation #2: This week (a bit delayed, sorry) I’ll be publishing my narrated, edited interview of Jon Husband, which I recorded earlier this week, on hierarchy, community and education, and recording a third interview. Possible Open Thread Question: We know people judge us by appearances. To what extent, do you think, does the way we make ourselves appear affect our own sense of identity, our ability to be nobody-but-ourself? If we looked and behaved exactly the way we wanted and felt, what would happen to us? Is our illusory ‘right’ to dress and appear the way we want to, part of the way societykeeps us from being who we really are? |
October 13, 2007
Saturday Links for the Week — October 13, 2007
![]() From the ‘picture’s worth a thousand words department’: This pretty well says it all. Charge It To My Kids: I rarely agree with Flat Earth Friedman, but he’s right in his outrage over Bush’s (and our) growing propensity to buy, use and spend more, and collect, demand and give back less, and how that betrays our responsibility to future generations. Closed Minds in Open Space: From Chris Corrigan, how the education system makes us behave badly in self-managed learning and collaboration activities like Open Space. Jon Husband points out that ‘education’ comes from the Latin words meaning to lead out (of ignorance, the darkness etc.) Podcast with Jon coming up early next week. Burma Regime’s Brutality Coming to Light: Despite the crackdown on the media and Internet in Burma (Myanmar), word is getting out on the atrocities committed by the police and military against the pro-democracy protesters recently. Buy Radiohead, Sell Facebook: Umair Haque explains the importance of Radiohead’s ‘pay what you want’ new CD release, and Om Malik discusses the sudden decline of Facebook. Umair thinks Facebook is doomed like MySpace, and I think he’s right. Thought for the Week: from Wendell Berry via Dave Smith’s Briarpatch Network: Seventeen Rules for a Sustainable Community:
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October 11, 2007
Second Life as a Platform for Virtual Meetings and Distance Learning Programs
![]() Next month I’m participating in a ‘fireside chat’ on the future of education with a group of leading thinkers on the subject from around the world — in Second Life. We’ll all be there, represented by our avatars, sitting on a beach in this virtual world, warming ourselves by the bonfire, stretching our legs, having a drink, going for a walk among the palms, and chatting both in our real voices and by a displayed IM thread. The chat will be broadcast to others who don’t have avatars (so they can’t be present ‘in person’), and it will be recorded as a vlogcast. Setting up my avatar, pictured above, was easy — you start by picking from a dozen ‘stock’ avatars. But it doesn’t take long to learn that you can no more keep the appearance you first entered Second Life with than you can keep the appearance you first entered real life with. It just isn’t done. You have to reinvent yourself, change your body, your skin, your hair, your clothes, learn some new moves. Second Life is very much like real life — but not for the reasons you might imagine. It’s like real life in these ways:
In some ways, Second Life is ‘better’ than real life. Therein lies its seductive appeal:
In some ways, Second Life is inferior to real life. These can ‘get’ to you quite quickly:
So what’s the potential here for holding virtual meetings and distance learning sessions in Second Life? I think it’s extraordinary, with a few caveats:
Despite these caveats, I’m really excited about the potential of virtual environments like Second Life as meeting and learning tools. I can even imagine having an Open Space event in Second Life, complete with the invitations, the opening forum, the breakout sessions (each recorded automatically), and even, virtually, the exercise of the Law of Two Feet. I wonder if any Open Space experts have thought about this. I betthey have. Category: Technology and Society
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October 10, 2007
Natural Education, Natural Enterprise, Natural Community: Creating a Virtuous Cycle
![]() I‘ve been chatting recently with my European friend lugon, of fluwiki fame, about the recurring frustration many of us have trying to move from ideas to actions. Progressives seem to agree that natural education (unschooling), natural enterprise (making a joyful living doing something important that you love and do well with people you care about), and natural (intentional) communities make sense. But to most they seem to be just an ideal. Why are there so few success stories of these? Can we ever hope to scale them up or replicate them across the globe so that they replace the existing, dysfunctional systems? I think the reason for the frustration is that the dysfunctional systems, for all their flaws and the immense damage they do to our psyches, our societies and our environment, constitute a vicious cycle, each element reinforcing the others. It’s not sustainable, but it does tend to hold itself together until something gives and it all flies apart. I’ve illustrated this in the red cycle in the chart above. Our traditional education system teaches learned helplessness, and does not teach us how to make a living for ourselves. It perfectly feeds the industrial business-political-economic system, which wants an excess of cheap, frightened, obedient, dependent labour. As wage slaves we assemble into alienated bedroom communities, where the place we live is dictated by income and proximity to job, not sense of place or kinship with neighbours. These soulless communities are strictly utilitarian, and have no capacity to teach people, so education is closeted in institutions apart from the real world, where the propaganda can be propagated without any dissonance from reality. This vicious cycle is self-perpetuating, but it is not sustainable. Pathological corporations destroy the environment and disregard human well-being in the relentless pursuit of profit at any cost. Alienated communities engender crime, poverty, disparity, stress, anger, despair and emptiness. The education system is loathed by its inmates, and serves as little more than an expensive incarceration for excess, untrained, and not-yet-obedient labour. Most of us know, intuitively, emotionally, and (if we have the time and opportunity to become informed) intellectually, that this system is not how we were meant to live, and not an optimal way to live. So we try experiments (the black arrows in the chart above):
The record of all these experiments in living a natural life is poor. Why is this? Is the only life we know the only life we can ever again hope to know? I think the problem is that we give up too easily. This is understandable — it’s like riding a bicycle for the first time. Until you get up to the speed where movement and stability self-perpetuate, it seems a frustrating and hopeless endeavour. We need to keep in mind that, as the green cycle in the chart shows, there is a natural economy cycle that self-perpetuates and self-reinforces just as powerfully as today’s dysfunctional vicious industrial economy cycle. We just need to get it moving fast enough. We need to get more experiments going, in tandem, reinforcing each other. If we offer unschooling and we offer entrepreneurship skills and we seek to buy from local natural enterprises and we work to build and network together self-sufficient natural intentional communities that offer an environment for learning in community, all together then will start to see these efforts reinforcing each other and creating a virtuous cycle. Lugon suggests a three-step process for getting past inertia, for getting this virtuous cycle going fast enough that is keeps going through its own momentum:
I like it. I’m inspired to dust myself off, shake off the bruises, stop looking at the bicycle I’ve constructed and get back on the damn thing and this time, pedal and keep pedaling and not stop until….hey, it’sgoing by itself! Category: How to Save the World
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October 8, 2007
How Short-Term Thinking Affects Risk Perception, Investment Decision-Making and the Need for Business Activism
![]() Businesses are preoccupied with risks. Their managers believe they should be able to mitigate them, or at least be prepared for them. But they don’t understand the nature of complexity, and that complex events that pose risks to organizations cannot be analyzed into cause-and-effect, and cannot be accurately predicted, and therefore cannot be planned for, prevented, controlled or mitigated. The only thing a business can do is be resilient enough to cope with them if and when they occur. Business managers likewise are preoccupied with the short term. As a result they don’t concern themselves with risks that they perceive as longer-term, or risks whose probability of occurrence they underestimate out of ignorance. What is a business risk? Something that has a potential negative impact on the organization’s performance or sustainability (its ability to continue to operate and meet its objectives indefinitely). Risk is the product of (a) the probability or frequency of an adverse event occurring and (b) the severity of consequences (financial or otherwise) if it does occur. On the charts in this article, high risks are those in the upper right corner. Risk management is the awareness, preparedness and mitigation actions an organization takes to minimize the consequences of organizational risks. The charts above and below each display 30 major types of organizational risk.
So if you’re an investor, what should you make of this? My suggestion is that you do your own assessment of risks facing the companies you are thinking of investing in, and then read the Management Discussion and Analysis to see (a) whether what management is doing to address those risks is appropriate, and (b) to the extent there is little management can do, how exposed the company is to risks beyond its control. And if you’re an activist, how can you use corporate management’s risk preoccupation to bring about social and environmental reform? This is tougher, because you need to discover what most companies don’t disclose: the social and environmentally irresponsible activities they engage in: the pollution and waste their operations produce, their propensity to use outsourcing, offshoring, union-busting and unsafe labour practices to keep costs down, the extent to which they intimidate employees and customers seeking redress for corporate misdeeds, their lobbying activities that are in the company’s interest but against the public interest, and the exploitation of foreign labour and underpriced foreign resources.. Most of these activities, while unethical, are not illegal. What’s worse, because they externalize costs (transfer them from the corporation to others) these actions contribute to the Tragedy of the Commons — and therefore exacerbate many of the external risks on these charts (global warming, energy and water shortages etc.) — risks that then affect everyone on the planet. Because these activities are not illegal, and many of them increase short-term profits, the activist’s only recourse is to educate the public and embarrass the company into behaving more ethically. They will do this if public outrage reaches the level that the risk of damage to its reputation (one of the risks in blue on these charts) exceeds the financial rewards of unethical behaviour. Many pension funds, government investors and other private equity funds now consider corporate ethics in making investment decisions, and a combination of customer and investor loathing for a corporation’s behaviour can be a powerful market force, and a motivator to a company to clean up its act. As consumers and investors, we have more power to influence corporate activity than we might think. But it’s very difficult and expensive to get compelling, reliable evidence of corporate misdeeds, in an age when the mainstream media have largely given up on investigative reporting, and when giant corporations have deep pockets and armies of lawyers to buy off or threatenwhistleblowers, activists and investigative journalists. But at least we can know what motivates management thinking, and therefore what we’re up against. Categories: Consumer Power and Activism
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My book on Natural Enterprises proposes a partnership model for new enterprise formation and sustainability. Joel Bakan’s book 









